 | |
| Type | Privately held company |
|---|---|
| Industry | Private equity |
| Founded | 1992 |
| Headquarters | Chicago, Illinois, United States |
| Products | Leveraged buyout |
| Total assets | $23 billion[1] |
Number of employees | 50+ (2007) |
| Website | http://www.mdcp.com/ |
Madison Dearborn Partners (MDP) is an American private equity firm specializing in leveraged buyouts of privately held or publicly traded companies, or divisions of larger companies; recapitalizations of family-owned or closely held companies; balance sheet restructurings; acquisition financings; and growth capital investments in mature companies. MDP operates using an industry-focused investment approach and focuses on the following sectors: basic industries, business & government software and services, financial & transaction services, health care, and TMT services.[2] Since the founders established MDP as an independent firm in 1992, the firm has raised seven funds with aggregate capital of approximately $23 billion, and has completed investments in more than 130 companies.[3]
History
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Madison Dearborn Partners was founded in 1992 and is based in Chicago, Illinois. The founders, John A Canning Jr, Paul J. Finnegan, Samuel M. Mencoff, and Nicholas W. Alexos had previously made private equity investments for First Chicago Bank.[4] The north-east corner of First Chicago's then-headquarters was at the intersection of Madison and Dearborn Streets.
Madison Dearborn's chairman, John Canning, Jr., is also a minority owner of the Milwaukee Brewers baseball team and submitted an ultimately unsuccessful bid to buy the Chicago Cubs[5][6]
Investments
In 1998, the firm bought Reiman Publications, based in Greendale, Wisconsin, from Roy Reiman for $640 million. In 2002, the firm sold Reiman Publications to Reader's Digest Association.
In 2007, the firm joined forces with Michael Eisner's Tornante investment company to buy out baseball card maker The Topps Company.[7]
Madison Dearborn completed leveraged buyout transactions for a number of publicly traded and other significant companies in 2006 and 2007 including:
- Asurion
- CDW[8]
- LA Fitness
- Nuveen investments;[9] in 2014, a plan for MDP to sell Nuveen to TIAA-CREF for $6.25 billion was announced;[10] while the Wall Street Journal cited an anonymous source close to the transaction to the effect that MDP "will have broken even on the transaction", Felix Salmon queried that assertion at Reuters;[11] Dan Primack at Fortune then published additional information about auxiliary benefits to MDP to buttress the break-even claim.[12]
- Sorenson Communications
- Univision Communications[13]
- VWR International
- Yankee Candle[14]
Bell Canada
On June 30, 2007, Bell Canada Enterprises (BCE) announced that the company entered into a definitive agreement for BCE to be acquired pursuant to a plan of arrangement by an investor group led by Teachers Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners. The all-cash transaction is valued at C$51.7 billion (US$48.5 billion), including C$16.9 billion (US$15.9 billion) of debt, preferred equity and minority interests. The arrangement was approved on September 21, 2007 at a Special Meeting of shareholders by more than 97% of the votes cast by holders of common and preferred shares, voting as a single class.[15]
Investment funds
MDP invests through a series of private limited partnerships and its investors include a variety of pension funds, endowments and other institutional investors:
| Fund | Vintage Year | Committed Capital |
|---|---|---|
| Madison Dearborn Capital Partners | 1993 | $550 million |
| Fund II | 1997 | $925 million |
| Fund III | 1999 | $2.2 billion |
| Fund IV | 2000 | $4.1 billion |
| Fund V | 2006 | $6.5 billion |
| Fund VI | 2010 | $4.1 billion |
| Fund VII | 2016 | $4.4 billion |
Selected portfolio
- Amynta
- Ankura
- Ardonagh Group
- Asurion
- Bluecat
- Centennial Towers
- EVO Payments International
- Fleet Complete
- Intermedia
- Kaufman Hall
- LGS Innovations
- Liquid Web
- NFP
- NPAC Holdings
- Option Care
- Performance Health II
- RDX
- Topps
- Univision Communications
References
- ^ Capital raised since inception in 1992
- ^ "Madison Dearborn | Sectors". Madison Dearborn Partners. Retrieved 2018-05-18.
- ^ "Madison Dearborn | About Overview". Madison Dearborn Partners. Retrieved 2018-05-21.
- ^ COMPANY NEWS; Fund Venture Begun in Chicago (New York Times, 1992)
- ^ Is John Canning Jr. the next John Henry? Archived 2009-09-03 at the Wayback Machine (TheDeal.com, 2007)
- ^ Brewers stakeholder in the fan business (Milwaukee Journal Sentinel)
- ^ A Bid for Topps, the Baseball Card Company (New York Times, 2007)
- ^ Equity Firm to Acquire Net Retailer (New York Times)
- ^ Mutual Fund Manager Agrees to Buyout (New York Times, 2007)
- ^ Hoffman, Liz, and Leslie Scism, "TIAA-CREF to buy Nuveen Investments for $6.25 billion", MarketWatch, April 14, 2014. Retrieved 2014-04-14.
- ^ Salmon, Felix, "Private equity math, Nuveen edition", Reuters, April 14, 2014. Retrieved 2014-04-14.
- ^ Primack, Dan, "Madison Dearborn's patience pays off on Nuveen Investments" Archived 2014-04-15 at the Wayback Machine, Fortune, April 14, 2014. Retrieved 2014-04-14.
- ^ Madison Dearborn part of winning $12.3B bid for Univision (Chicago Business News, Analysis & Articles, 2006)
- ^ Candle Maker Accepts a Buyout Offer (New York Times, 2006)
- ^ Privatization of BCE
- ^ Skelly, Keenan (May 4, 2010). "Press Release". The Wall Street Journal.
- ^ Madison Dearborn Partners Overview Archived 2002-06-04 at Archive.today